Are you considering starting an online consignment or resale business? Read what categories sell best and what tools you need. You will learn how to expand from a physical store to online smoothly, understand the top product niches to pursue, and pick the ideal online store builder like Shopify vs. WooCommerce.

1. Starting your online resale and consignment shop

Many successful online resale shops started as power sellers. Platforms like eBay, Vinted, and Depop are perfect places to begin as you can focus on what categories work best for you and you already have a high demand. Spend time in getting practical learnings instead of writing a business plan.

• List items on eBay and Vinted to test what sells without upfront costs. These platforms charge fees only after your items sell, offering real insights into your true sell-through rate.

• Depop's audience quickly highlights trending labels. Use tags strategically to identify high-demand products before buying bulk inventory.

2. Expand your brick-and-mortar store to online

If you already run a physical shop, your transition online can be simple. You don't need a fully integrated online shop right from the start. You can begin with a Click-to-Reserve Catalogue by just synchronizing your existing inventory to an online catalogue on your website with tools like Shopify, so your customers can reserve items without creating extra work of handling logistics. This will help you also to be better found on Google and attract more customers who might want to see your items before they visit your shop.

You can then progress to full integration once comfortable, and accept direct online payments in your online shop.

3. Most popular categories for online consignment and resale

Choosing the right niche greatly influences your shop's success. Here are proven popular categories:

1. Designer Second-Hand: Customers accept authentication fees easily due to high-value items. Another big advantage is the high average order value, making it easier for you to spend more money on marketing per customer. Examples are:
   - Loop Generation from UK
   - Couture USA from US
   - The Phir Story from Canada
   
   

2. Kids and Children’s Items: Constant demand because parents upgrade frequently. It's easier to build a community out of buyers and sellers. Examples:
   - Small Talk City from US
   - Once Upon a Child from US
   
   

3. Vintage Clothing: Shortening trend cycles make vintage highly desirable, especially with Gen-Z. Vintage fashion is predicted to overtake fast fashion by 2029, so you can easily grow with the market. Examples:
   - Ragman Collective from UK
   
   

4. Furniture, Collectibles and Art: Sustainable living trends have increased demand for secondhand home goods. Examples:
   - Midwest Collects
   
   

5. Luxury Watches and Jewellery: Built-in authentication reduces returns. Examples:
   - Swiss Watches

4. Best shop builders for online resale and consignment

The three usual suspects are Shopify, WooCommerce, and Squarespace.

Shopify is best suited for most businesses with a focus on resale & consignment.You can easily cross-post your items to Instagram and Google Shopping with the free Google Shopify app, and you upgrade performance simply by changing plan tier later.

Tipp: Add a “Sell with us” page so sellers understand the process on how to consign and get paid. More on that below.

Here is a good tutorial on how to build your first Shopify shop:

5. Shopify consignment apps to manage sellers & payouts

Shopify has great shop building but not built for reselling and consignment by default; every item unique and you need to manage your sellers and payouts. Circle-Hand is built to integrate with Shopify and a Shopify partner. It helps you to list each unique items in seconds using AI image recognition and helps to handle payouts for consignment and buy outright. It also offers a client portal that you can link on your 'sell with us' page, so sellers can apply with their items that you can accept or decline.

Click here to get to Circle-Hand Shopify App

6. Practical guide for implementing your consignment and resell process

Here is a consignment agreement template that you can use. Creating transparent consignment process is essential for building trust with your sellers. Agreements should outline

• Item acceptance criteria: Define the types of items accepted, condition standards, and any brand preferences.

• Pricing: Explain how items are priced, including any markdown schedules.

• Consignment structure: Detail the percentage split between the shop and consignor. Consignment share based on price helps to get higher quality and higher expensive items (e.g. default 50/50%, above $100 60/40%, above $500 70/30%)

• Consignment period: Specify the duration items will be listed for sale.

• Payout terms: Clarify payment schedules and methods for consignors. Common is a monthly payout.

• Unsold items policy: Outline procedures for items that do not sell within the consignment period (e.g. donation).

Ensure that your sellers agree to these terms when they create a new profile. Include the terms and conditions in the confirmation emails with a delivery receipt. A "Sell with Us" page, like this (they also use Circle-Hand), can also be helpful.

Here is the typical workflow of shops that focus on selling online:

1. Sellers sign up via a dedicated "Sell with Us" page on your website

2. Sellers create a profile in Circle-Hand and accept your terms and conditions.

3. You review item submissions, approve or decline.

4. Seller sends items to you. Many shops offer physical drop ins or sometimes pick-up services.

5. Send a delivery receipt when items arrive to avoid any discussions later on.

6. Accepted items are photographed; Circle-Hand generates descriptions and pricing and syncs them to Shopify

7. Sellers can track their sales in the portal

8. Monthly payouts including PDF receipts for transparency.

Hardware essentials

• Label printer like Phomemo ($85) or Zebra ZD420 so you can print out shipping labels and barcode labels for inventory management

• Use your smartphone with e.g. PhotoRoom to cut background in two taps for consistent white-background shots. You don't need an expensive camera to start with.

7. How to get your first customers

Starting a consignment shop is not just about selling secondhand items, it is about building a community. The magic of consignment is that the people who bring you great inventory are often the same people who will shop from you. Sellers become buyers, buyers become sellers. This creates a natural flywheel of growth, especially when you focus on a specific category like fashion, kidswear, or luxury items. The more targeted your offering, the more overlap you create between the people who sell and the people who buy.

To grow your store, you need to attract good sellers and buyers. Friends and family are often the first sellers, and they bring others along. Social media helps this momentum grow. Gen-Z in particular love the treasure hunt of secondhand shopping, so showcase your unique items!

1. Instagram and Reddit
Find your niche communities. Photos, reels and short videos showcasing items, drop-offs, or styling tips work well. If you use Shopify, this Shopify app for Instagram lets you sync your catalog and tag products with one click. This makes it easy for viewers to buy what they see.

2. Google Shopping
Using Shopify’s free Google App, your unique one-off items can appear in Google Shopping search results without spending anything on ads.

3. Cross-list to eBay
eBay still has the highest global traffic for secondhand items. You can use Shopify Apps like DPL to sync your items.

4. Create a Physical Drop-in Point
Having a location—even if you just sell online—adds trust. Shops like Second Skin in New Zealand use this to source high-quality consignments because locals feel more confident dropping items off in person.

Final Tip: Start small, stay focused. Choose your category, build personal relationships, and let the community grow around your shop. Consignment is not just resale—it is connection.